Heat pump rebates, program by program
The rebate depends on who sends your power.
The money for a heat pump here now comes from your local power program, not the state. Here's what each one pays and the step people miss, taken from each program's own terms.
What they pay
Heat pump rebates still open near you
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$1,500
WestLight Energy
Per heat pump that replaces a gas heater or furnace, in the towns WestLight serves.
Source: WestLight Energy (formerly Peninsula Clean Energy), Home Upgrade Rebates Terms and Conditions (updated May 18, 2026), last checked 2026-10-22.
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$2,000
Silicon Valley Clean Energy
For a heat pump replacing a gas furnace, or $3,000 for an income-qualified home.
Source: Silicon Valley Clean Energy, Appliance Specifications (April 2026), last checked 2026-10-22.
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$1,500
San Jose Clean Energy
For a heat pump system replacing gas, or $2,500 in an Environmental Justice Community.
Source: San Jose Clean Energy, EcoHome Equipment Specifications (updated 7/1/2026), last checked 2026-10-22.
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$3,000
Silicon Valley Power
Per ton, up to $10,000, when a heat pump replaces a gas furnace in Santa Clara.
Source: Silicon Valley Power, Residential Heat Pump HVAC Rebate Rules, last checked 2026-10-22.
Before you sign
The questions that decide whether you get paid
Each program sets its own order of steps, and the order is where rebates get lost.
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Has your rebate been approved yet?
If yes
Then book the install
Don't sit on it: San Jose Clean Energy holds approved money for 120 days, and so does Palo Alto.
Heat pump installationIf no
Apply before the work starts
San Jose Clean Energy, Silicon Valley Clean Energy and Palo Alto all want the application in first. WestLight is the odd one out: you apply after the install, within ninety (90) days.
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Is the heat pump replacing gas heat?
If yes
That's the swap they pay for
WestLight, Silicon Valley Clean Energy, San Jose Clean Energy and Silicon Valley Power all write their amounts for a heat pump taking over from gas.
If no
Fewer programs pay
WestLight leaves out heat pumps that only replace electric heaters or a fireplace. Silicon Valley Power still pays $1,000 per system for replacing electric resistance heat.
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Keeping the gas furnace as a backup?
If yes
Some rebates drop out
WestLight and San Jose Clean Energy turn down dual fuel systems, and Silicon Valley Clean Energy asks for the original gas appliance to come out.
Hybrid dual fuelIf no
All-electric keeps them open
WestLight's terms take any fully electric heat pump setup: ducted or ductless, split or packaged.
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Is it a single-stage heat pump?
If yes
Not for Silicon Valley Clean Energy
Its rebate leaves single-stage heat pumps out and wants a SEER2 of 16 or greater, or an inverter.
SEER2 and the minimumsIf no
An inverter clears that bar
An inverter heat pump meets Silicon Valley Clean Energy's efficiency rule whatever its SEER2.
What each program pays, and when to apply
Amounts are for a heat pump replacing gas heat, from each program's current terms. WestLight Energy is the new name of Peninsula Clean Energy, so older paperwork may say either.
| Program | Pays | When to apply |
|---|---|---|
| WestLight Energy | $1,500 per heat pump | After the install, within ninety (90) days |
| Silicon Valley Clean Energy | $2,000, or $3,000 income-qualified | Before the install |
| San Jose Clean Energy | $1,500, or $2,500 in an Environmental Justice Community | Approved before installation begins |
| Silicon Valley Power | $3,000 per ton, up to $10,000 | Within 60 days of the building permit final date |
| CleanPowerSF | Up to $1,200 in bill credits | Installed on or after April 14, 2026 |
Source: WestLight Energy (formerly Peninsula Clean Energy), Home Upgrade Rebates Terms and Conditions (updated May 18, 2026). Rules and programs change: last checked 2026-10-22.
Source: Silicon Valley Clean Energy, Appliance Specifications (April 2026). Rules and programs change: last checked 2026-10-22.
Source: Silicon Valley Clean Energy, Home Rebates. Rules and programs change: last checked 2026-10-17.
Source: San Jose Clean Energy, EcoHome Equipment Specifications (updated 7/1/2026). Rules and programs change: last checked 2026-10-22.
Source: San Jose Clean Energy, EcoHome Rebate. Rules and programs change: last checked 2026-10-22.
Source: Silicon Valley Power, Residential Heat Pump HVAC Rebate Rules. Rules and programs change: last checked 2026-10-22.
Source: CleanPowerSF, Electrify Your Home. Rules and programs change: last checked 2026-10-22.
Source: City of Palo Alto Utilities, Rebate Hub. Rules and programs change: last checked 2026-10-17.
Source: Silicon Valley Clean Energy, Home Rebates Participant Agreement. Rules and programs change: last checked 2026-10-22.
Why the state and federal money isn't in the table
The federal tax credit for home efficiency upgrades is not allowed for anything placed in service after December 31, 2025.
California's HEEHRA rebates for single-family homes have been fully reserved statewide since February 24, 2026. Requests that weren't approved sit on a waitlist, and a waitlisted home only gets the rebate if the heat pump goes in after its reservation is approved.
TECH Clean California's single-family heat pump incentives have been reserved since November 14, 2025, and BayREN reports the funding available for 2026 is fully subscribed.
Source: IRS, FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21 (OBBB). Rules and programs change: last checked 2026-10-22.
Source: California Energy Commission, Inflation Reduction Act Residential Energy Rebate Programs. Rules and programs change: last checked 2026-10-22.
Source: TECH Clean California, single-family incentives. Rules and programs change: last checked 2026-10-22.
Source: Bay Area Regional Energy Network, find incentives. Rules and programs change: last checked 2026-10-17.
Ask before you choose the equipment
The rebate rules can pick the system for you: single-stage or inverter, dual fuel or all-electric. Tell us your town when you call and we'll go through which program applies.
Tell us what it's doing. We'll take it from there.
Call and describe the problem: the noise, the smell, the room that never warms up. Or book a visit online.
